What does an R-Squared value show?

1 Answer
Apr 22, 2018

Answer:

How well a regression fits the points

Explanation:

With a #R^2# value close to 1, we the regression would fit the points perfectly:

![https://d2jmvrsizmvf4x.cloudfront.net/Fh8dyLATA6oWvKNjN37L_r_squared_1_regression.jpg)

Since the #R^2# isn't 1 the points won't fit the line perfectly even though the #R^2# value is so high.
Since the #R^2# is so high the graph would be accepted. Typically the lower limit is approximately #R^2 = 95# for a good graph.